OpenAI is reportedly exploring a bold move into the hardware space by considering the acquisition of io Products, an AI hardware startup co-founded by design legend Jony Ive and OpenAI CEO Sam Altman. According to a report from The Information, the deal could be valued at approximately $500 million, positioning OpenAI to expand its footprint beyond software and language models.
Jony Ive, who spent decades shaping Apple’s most iconic products—from the iPhone to the MacBook—left the tech giant in 2019 to launch his own design firm, LoveFrom. In 2023, he revealed during an interview with The New York Times that he had teamed up with Sam Altman to work on a new kind of AI hardware that would seamlessly integrate with daily life. That collaboration is now formally taking shape under the name io Products, a secretive venture that has quietly attracted backing from major investors, including Laurene Powell Jobs’s Emerson Collective.
While the talks are ongoing, sources say OpenAI is still weighing its options and could choose to pursue a strategic partnership instead of a full acquisition. However, the potential $500 million figure signals strong interest and serious intent. If the deal goes through, it would mark one of OpenAI’s most ambitious moves yet—allowing the company to control not just the software behind its AI models but the devices users interact with.
The small but powerful team at io Products includes several key ex-Apple designers, such as Tang Tan and Evans Hankey. Both played vital roles in crafting Apple’s industrial design language, making their presence at the startup a major asset. The company is reportedly working on a range of AI-driven devices, including futuristic smart home products. These products are envisioned to be less intrusive and more socially thoughtful than smartphones—technology that blends in rather than dominates.
This philosophy ties directly into OpenAI’s broader goals of building AI systems that are useful, safe, and deeply embedded in the human experience. By integrating its models directly into purpose-built hardware, OpenAI could dramatically improve how people access and engage with AI daily. It would also allow the company to create a more cohesive user experience, optimizing hardware and software together—much like Apple has done for years.
The timing also feels strategic. As OpenAI continues to compete with major tech players like Google, Amazon, and Apple, owning a piece of the hardware ecosystem could offer a crucial edge. In an era where AI assistants, voice-activated devices, and intelligent wearables are rapidly becoming the norm, a partnership or acquisition like this could redefine how AI fits into the consumer world.
Whether OpenAI moves forward with acquiring io Products or chooses to partner with the team behind it, one thing is clear: the company sees a future where AI is not just a service you use on a screen—but something seamlessly woven into the physical world around you. This deal could be the first major step toward making that vision a reality.
